GAP (NYSE:GAP) Stock Price Down 4% - What's Next?

The Gap, Inc. (NYSE:GAP - Get Free Report)'s share price traded down 4% during mid-day trading on Monday . The company traded as low as $21.88 and last traded at $21.92. 1,229,500 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 7,786,476 shares. The stock had previously closed at $22.83.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Citigroup dropped their target price on shares of GAP from $33.00 to $30.00 and set a "buy" rating for the company in a report on Friday, May 30th. Morgan Stanley dropped their price objective on shares of GAP from $30.00 to $27.00 and set an "overweight" rating for the company in a research note on Tuesday, May 6th. The Goldman Sachs Group dropped their price objective on shares of GAP from $34.00 to $25.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Barclays raised their price objective on shares of GAP from $26.00 to $33.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Finally, Telsey Advisory Group reissued a "market perform" rating and set a $26.00 price objective on shares of GAP in a research note on Friday, May 30th. Seven investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to MarketBeat, GAP presently has an average rating of "Moderate Buy" and a consensus price target of $28.47.

GAP Stock Performance

The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.98 and a current ratio of 1.71. The company has a market cap of $8.07 billion, a price-to-earnings ratio of 9.28, a price-to-earnings-growth ratio of 2.48 and a beta of 2.14. The stock's fifty day simple moving average is $23.54 and its two-hundred day simple moving average is $22.43.

GAP (NYSE:GAP - Get Free Report) last posted its earnings results on Thursday, May 29th. The company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.07. The business had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.41 billion. GAP had a net margin of 5.80% and a return on equity of 27.86%. The business's quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.41 EPS. Equities research analysts anticipate that The Gap, Inc. will post 2.02 EPS for the current year.

GAP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 30th. Investors of record on Wednesday, July 9th will be issued a dividend of $0.165 per share. The ex-dividend date of this dividend is Wednesday, July 9th. This represents a $0.66 annualized dividend and a dividend yield of 3.08%. GAP's payout ratio is 28.57%.

Insider Buying and Selling at GAP

In related news, CEO Mark Breitbard sold 51,385 shares of GAP stock in a transaction on Friday, May 16th. The shares were sold at an average price of $27.00, for a total transaction of $1,387,395.00. Following the sale, the chief executive officer owned 123,985 shares of the company's stock, valued at $3,347,595. The trade was a 29.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 31.00% of the company's stock.

Institutional Investors Weigh In On GAP

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp purchased a new stake in GAP during the 1st quarter worth $56,763,000. New York State Teachers Retirement System purchased a new stake in GAP during the 1st quarter worth $5,065,000. Handelsbanken Fonder AB purchased a new stake in GAP during the 1st quarter worth $1,107,000. New Mexico Educational Retirement Board purchased a new stake in GAP during the 1st quarter worth $892,000. Finally, Rhumbline Advisers purchased a new stake in GAP during the 1st quarter worth $12,210,000. Hedge funds and other institutional investors own 58.81% of the company's stock.

About GAP

Gap, Inc operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections.